2023-09-14 12:33:17
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The deposit rate, which is the benchmark, is increased to 4.0%, a level never reached in the history of the institution.
Published on 09/14/2023 2:33 p.m. Updated on 09/14/2023 3:01 p.m.
Reading time: 1 min The euro logo, in front of the European Central Bank, September 14, 2023, in Frankfurt (Germany). (KIRILL KUDRYAVTSEV / AFP)
The European Central Bank (ECB) raised its key rates by 0.25 points on Thursday September 14. This is the tenth increase in a row as part of its monetary tightening policy to combat inflation in the euro zone. Policy rates influence the interest rate at which commercial banks lend to their customers.
The deposit rate, which is the benchmark, is thus raised to 4.0%, a level never reached since the launch of the single currency in 1999. The refinancing rate and the marginal lending rate are respectively at 4.0%. .50% and 4.75%. “Inflation continues to slow, but is still expected to remain too high for too long a period of time”justified the institution in a press release.
The ECB has also raised its inflation forecasts for 2023 and 2024, due to the impact of energy prices. The monetary institution’s new macroeconomic projections forecast a price increase of 5.6% in 2023, then 3.2% in 2024 and 2.1% in 2025, approaching the medium-term objective of 2.0 %.
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